Maximizing gold returns

Dear Readers, Today my friend and I were discussing and arguing about an interesting topic on gold investing and how a gold investor can maximize returns using the power of options. Being a firm believer in equity investing, I hope to spot any loop holes in his gold strategies- in short this is what we discussed; There are many people out there waiting to invest their money into gold at their desired price; so in order to help these people enter the game, they can actually do the following besides waiting on the slide line for gold prices to drop. Step 1: Write (sell) a Put option at a strike price that you are willing to invest, that way you can earn cash income even if gold continues to raise instead of just waiting on the side lines. Etc: Gold ETF is now at $23, You can write a put option at $22 which is your desired price to enter gold. If gold continues to rise, the put option which you sold will become worthless and expire, in return you collect the cash income from the sold option; keep on doing so, if gold continues to rise and earn fees from there. The downside of course is if gold falls, You have the obligation to buy gold at $22 instead of the current market price which is cheaper to an unknown extend. But is somewhat of a good news to you, because you have now bought gold at your ‘desired’ price (albeit at a higher price) and you can activated step 2 Step 2: Now that you have bought gold at $22, your main objective is to sell gold for more than $22, so you set your desired selling price at $23 again. What you can do is lease your gold out, in the form of writing a call option at strike price $23; in others words what you are trying to do is, you promise to sell back gold to the counter party at $23 should gold price raises. If gold price rose to $23 or above, the call is exercised and you have to sell your gold at $23 or higher. Essentially you would have cash out everything and go on to repeat step 1 again. If however gold prices where to fall some more, you can activate step 3 Step 3: Buy gold at that fallen market price and write call option again and wait for gold to go up. So dear readers, what do you think are the risks to this 3 step gold investing strategy? It seems to me like interesting investing plan that rewards investors with high returns and low risk.